Tag Archives: winnipeg financial planners

What You Need to Know When Preparing for Your 2017 Tax Return

As Spring draws closer (hopefully), so does the time to prepare and file your 2017 taxes. Since we last posted, you should have received all the required paperwork from your employers and investments. Now it’s time to catch up on the latest changes to the tax laws as some of them may affect you.

CaregivTax Tips 2017ers
Are you a caregiver of a family member with a physical or mental impairment? If so you may be eligible for the Canada Caregiver Amount tax credit. The government recognizes the extra financial responsibility being a caregiver can have on your finances. This year determining if you qualify for the credit will be much simpler.

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How to Financially Survive Divorce

43131755 - divorce agreement. wife and husband can not make settlementMost people have been exposed to divorce either directly or indirectly and can attest to the impact it has on all involved. Some people avoid the couple and some get far too involved. One of the most damaging aspects of divorce is the financial damage that can be caused if you don’t address the money side as soon as possible.

A “friend of a friend” had been married for a number of years when they found out their spouse was cheating. Emotionally devastated, this friend didn’t know the steps to take to protect themselves. So while they sorted through how they felt and where they wanted to go, their spouse was spending all their money and amassing a large amount of debt. By the time next steps were decided, this friend was now financially responsible for half of the debt.

If this were you, would you know the steps to protect yourself from that level of financial destruction? Did you know if you are directly involved in a divorce, one of the people that can help is your Financial Advisor. At YourStyle Financial, we can help you organize your financial information which will allow you to effectively and efficiently work with your spouse and lawyers. This can also help reduce legal fees, which assists in financial recovery. We’ll start the conversation with a Checklist-divorce-2017 and go from there.

This is just an inch in the well of information and assistance we are able to offer. We’ll be writing again soon on dividing assets and dealing with debts. If you think we can help, be sure to contact us in the early stages of potential separation or divorce.

How To Shrink Your Interest Payments

Currently, there’s a lot of talk about what may happen if interest rates rise. So, chances are, you’re looking for tips on how to protect your income and balance your portfolio.

However, capturing money that’s wasted on inefficient interest payments should always be a priority. When it comes to cash flow planning, that’s one of the main ways people are able to save money and free up income.

shrink-interest-paymentsPaying more interest on debts than you need to can significantly affect your finances. So consider whether you’re falling into the following traps.

  • Mortgage myopia. You may assume your interest rates and mortgage payments will remain the same over a long period of time, or you may not know how to plan for fluctuating rates. As a result, you could fail to build interest rate-movement assumptions into your financial plans and projections.
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Invest or Pay Down

When a sudden surplus of money comes in, there are a couple thoughts that go through one’s head.

The first, regardless of your financial situation, is to treat or “spoil” oneself outside the bounds of your regular spending habits. Look no further than postings on social media around the time that tax return cheques roll in, where people will proudly proclaim that the three-figures they got back from the government are going to a new TV or a trip south of the border.

Those who are more financially minded, however, will look to their current bottom line and make a decision based on that status.

And here’s where the real questions start to perk up – do I invest or do I pay down a debt.

It’s a real puzzler.

Putting the money into the markets or even into a TFSA or RRSP does give you a little bit of confidence for your future – you’ve been able to do a little bit more for your 30-years-from-now-self and/or family.

The other option is to put that money against debt, be it loan, line of credit or mortgage which solves your current financial issues, or at least makes a dent in the bill you face over a 20-year span.

The reality is that either of these scenarios – or to throw a curveball and split the two – do more for you than your short splurge from a pure financial point of view. Factor in the little bit of emotional relief that comes with easing your debtload or increased security down the line, and you can start to see the benefits of putting that sudden rush of funds in the bank rather than in retail.

For more financial tips from the planners at YourStyle, contact us today.